Pension Credits

[originalang]

Can anyone give me some advice please. My mum was 65 yesterday . She left work at a young age on ill health and transferred her superannuation into a private policy which matured yesterday and consequently she has received a lump sum and will also receive a monthly payment for up to five years. The lump sum immediately takes her over the �6000 capital threshold for pension credits so she knows she loses these and will have to start paying her rent/council tax. She's struggled all her life and would like to go on a spending spree for her home etc and also give her children / grandchild financial gifts. My worry is if and when the money drops below the �6000 again would she be entitled to pension credits again or are there restrictions on what they consider to be responsible spending. She's so kind and generous and deserves to enjoy this but I want to ensure she doesnt end up struggling later. Thankyou

[theonlyone]

Best person to ask is Ethel but i'm sure
you can have �16k and claim benefits ..
it's a minefield but also try the local
council benefits officer ..the lady here got
lots of residents extra money ..
Good Luck

[originalang]

Thanks theonlyone, we've been told its definitely �6000. She will accept it if she won't qualify again for the benefits but could just do with knowing so she spends, saves and invests accordingly to secure the rest of her life. Thankyou so much for your advice.

[theonlyone]

Also try the CaB they will put you
right ..

[Yorky Lass]

Pension Credit is not cut off at �6000 savings. For every �500 above the �6000 then �1 is considerded as income. At age 65 there is another Pension Credit she could qualify for which is savings credit. There is another calculation for those with savings. She could still qualify.
As a means tested benefit you will be aware that all income, inc her new monthly payments, will be taken into account.
Should she give money away or spend excessively it could be regarded as deprivation of capital and she wouldn't receive Pension Credit if that amount would have taken her over the limit.
Try this calculator
http://www.thepensionservice.gov.uk/pensioncre dit/calculator/home.asp

[theonlyone]

Also if your Mum is not well and needs
help you can apply for Carers or Attendance
Allowance ..there is lots of money in the
system which people are entitled to but
don't know how to get it ..as in free insulation
for your home ..the list is endless ..just try and
get your Mum everything she entitled to as she
has worked and paid in to the system ..

[originalang]

Thanks theonlyone and Yorky Lass for your advice, I really appreciate the trouble you've taken. Its the deprivation of capital I'm concerned about, will use all you both suggest to check it out as much as possible. I want her to be able to enjoy the money how she chooses but not put herself in a precarious situation later. Big Thankyou!!

[originalang]

Aww thanks In A Pickle, I'll certainly give that a go with her.

[themas]

You've had some very good advice here, but you are right to be concerned about the deprivation of capital rules. If she goes on a spending spree then she could well find later on that she is denied benefits when she is badly in need of them.

The rules are not very simple - it would be best if she visited a CAB and asked to discuss the whole situation before she starts giving money away (or spending it on a round the world cruise or something!)